The government has decided to reduce the prices of petroleum products and maintain the levy at the current level for the next 15 days. However The IMF is likely to raise objections.
According to the details, in view of fluctuations in the prices of POL in the international market, the government has decided to reduce the prices of petroleum products while maintaining the levy at the current level for the next 15 days.
The government is moving ahead with the intention of appeasing voters ahead of the July 17, 2022 by-elections to Punjab’s provincial assembly seats, but it is not yet clear how the IMF will react to it.
The IMF may raise objections to the reduction in prices as the federation had planned to earn Rs 855 billion through the collection of petroleum levy during the current financial year. So far, the government has imposed a levy of Rs 10 per litre on petrol and Rs 5 per litre on diesel.
Federal Finance Minister Muftah Ismail, on a proposal to reduce POL prices in the local market for the next 15 days from July 16, 2022, confirmed that international oil prices have come down slightly, but the proposed reduction has led the IMF to Ongoing negotiations will not be affected.
Official sources said the government would maintain the petroleum levy for the next 15 days, but officials wondered how the government would be able to raise Rs 855 billion by the end of this financial year.